Politico Newsletter - REMEMBER US?
A group seeking to ease tax burdens for American expatriates is reminding Trump that he promised to help them during the 2024 campaign.
Tax Fairness for Americans Abroad nudged the president to try to make that vow a reality before the end of the year, which would relieve what the group called the shackles of "unreasonable bureaucratic and financial burdens."
Trump pledged late in the 2024 campaign to end the system in which the U.S. effectively taxes its citizens on income made anywhere in the world, with some offsets included.
Eritrea is the only other government in the world with that kind of system, with the vast majority of countries essentially taxing people solely on their domestic income.
Expat advocates, low-tax groups and others have been lobbying for years for the U.S. to ease what they call the double taxation of Americans living elsewhere, and Trump's announcement was the biggest shot in the arm yet for those efforts.
It's an issue with some bipartisan interest, as some Democrats have also called the current setup unfair. GOP tax writers in both chambers, like Sen. Todd Young (R-Ind.) and Rep. Darin LaHood (R-Ill.), have taken the lead on easing the tax burden for Americans abroad, with LaHood first releasing a proposal on the idea late in 2024.
But there's been little progress on the matter during the current Congress, in which the administration has been dealing with a number of other pressing international relations matters. That led the expat group to peg its newest letter to Trump's recent birthday and the country's upcoming 250th.
"We proud Americans abroad are a powerful force for promoting American interests internationally," the group wrote in asking Trump to help create "a sense of urgency" for the required legislation. (Italics in original.)